Good evening StockBandits!
Stocks erased significant morning losses today with a gradual recovery effort for the better part of the day. After an opening gap to the downside and a gap fill attempt which failed, new lows were produced on the day. However, late morning we saw another turn higher which was able to stick, and from there stocks worked their way back up to post modest losses by the closing bell.
Today’s turn off the lows comes on the heels of consecutive losses since last week’s trading range breakout failed. With each of the indexes having made considerable progress to the downside in the past few sessions to reach the lower half of their respective trading ranges, buying pressure produced a modest lift from the session lows and we may be in line now for a bit of a relief bounce. However, I’m not counting on that producing follow through since we’re still caught in the ranges.
The price action overall remains very sloppy and choppy, with some good intraday moves but not nearly smooth enough to be aggressively swing trading. The overnight gaps are so frequent right now, plus the charts have had virtually no time at all to put in rest, and that’s keeping individual setups from really maturing at this point. Needless to say, a little rest would go a long way.
For now, my focus remains on abbreviated timeframes for new trades, although I’m keeping an eye out for quality setups for potential trades beyond the daytrading timeframe.
I’ll cover my game plan for Tuesday in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
Video Stocks Discussed: JVA, VHC, PANL, ANR
Swing Trading Candidates:
NONE TONIGHT – 100% cash.
[table “117” not found /]The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.
